Role of district central cooperative bank in economic development of farmer

Abstract

By acting as a vital connection between state cooperative banks and primary agricultural credit societies (PACS), District Central Cooperative Banks (DCCBs) significantly bolster the rural financial system. Crop production, irrigation, farm mechanization, dairy, and rural enterprises are just a few examples of the many agricultural and associated activities that farmers in India can access through DCCBs, which are the backbone of the country's cooperative lending framework. Increasing farmers' income, decreasing their reliance on informal moneylenders, and supporting sustainable rural lives are all greatly aided by DCCBs, which mobilize local funds and invest them productively. In addition to distributing loans, DCCBs help with government-sponsored programs including crop insurance, Kisan Credit Cards, and rural infrastructure projects, and they promote financial inclusion and savings habits. Despite the critical role they play, these institutions encounter obstacles that limit their efficiency and reach, including a lack of funding, increasing non-performing assets, problems with governance, and technology gaps. Farmers may be empowered even more, agricultural productivity can be enhanced, and rural economic development can be accelerated by professional management, digital integration, and successful regulatory reforms of DCCBs. That is why DCCBs are still crucial to India's larger objective of inclusive and sustainable growth, as well as to the socioeconomic situation of farmers.